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  5. New tax regime vs old for AY 2026-27: Check break-even deductions for ₹8-30 lakh income

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New tax regime vs old for AY 2026-27: Check break-even deductions for ₹8-30 lakh income

rajeev kumar
By Rajeev Kumar

3 min read | Updated on July 09, 2026, 19:13 IST

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SUMMARY

The break-even point indicates the amount of deductions required for similar tax liability under both regimes. The old tax regime will be more beneficial if a taxpayer can claim more deductions than the break-even point.

new vs old tax regime break-even point

Know the break-even point for deduction to decide between new and old regimes for AY 2026-27.

The ITR filing due date for salaried taxpayers for AY 2026-27 is just a few weeks away. As of June 8, 2026, over 1.6 crore taxpayers have filed their returns while more than 1.52 crore return filers have also verified their ITRs, according to the Income-tax Department.

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If you are still confused about whether to go with the new tax regime or the old, this article lists the break-even points for deductions at different income levels to help you decide, as per calculation by Taxmann.

The break-even point indicates the amount of deductions required for similar tax liability under both regimes. The old tax regime will be more beneficial if a taxpayer can claim more deductions than the break-even point. If the deductions are lower than the break-even point, then the new tax regime will be a better option.

₹8 lakh income: The new regime will be beneficial if the assessee is eligible to claim a deduction of less than ₹3,00,000.
₹9 lakh income: The new regime will be beneficial if the assessee is eligible to claim a deduction of less than ₹4,00,000.
₹10 lakh income: The new regime will be beneficial if the assessee is eligible to claim a deduction of less than ₹5,00,000.
₹12.5 lakh income: The new regime will be beneficial if the assessee is eligible to claim a deduction of less than ₹4,75,000. In this case, the tax liability under both regimes will be ₹70,200 if the total deductions claimed amount to ₹4.75 lakh.
₹15 lakh income: The new regime will be beneficial if the assessee is eligible to claim a deduction of less than ₹5,37,500. In this case, the tax liability under both regimes will be ₹1,09,200 if the total deductions claimed amount to ₹5.375 lakh.
₹20 lakh income: The new regime will be beneficial if the assessee is eligible to claim a deduction of less than ₹7,08,333. In this case, the tax liability under both regimes will be ₹2,08,000 if the total deductions claimed amount to ₹7,08,333.
₹24 lakh income: The new regime will be beneficial if the assessee is eligible to claim a deduction of less than Rs. 7,75,000. In this case, the tax liability under both regimes will be ₹3,12,000 if the total deductions claimed amount to ₹7.75 lakh.
₹30 lakh income: The new regime will be beneficial if the assessee is eligible to claim a deduction of less than ₹7,75,000. In this case, the tax liability under both regimes will be ₹4,99,200 if the total deductions claimed amount to ₹7.75 lakh.

Break-even deductions: New vs old tax regime for AY 2026-27

Income (₹)Deductions required for break-even (₹)
8,00,0003,00,000
9,00,0004,00,000
10,00,0005,00,000
12,50,0004,75,000
15,00,0005,37,500
20,00,0007,08,333
24,00,0007,75,000
30,00,0007,75,000
Source: Calculation by Taxmann
The due date to file ITR for taxpayers filing ITR-1 and ITR-2 is July 31, 2026. Before heading to the e-filing portal, you can check your tax liability for FY 2025-26 (AY 2026-27) with this income tax calculator.

About The Author

rajeev kumar
Rajeev Kumar is a Deputy Editor at Upstox, and covers personal finance stories. In over 11 years as a journalist, he has written over 2,000 articles on topics like income tax, mutual funds, credit cards, insurance, investing, savings, and pension. He has previously worked with organisations like 1% Club, The Financial Express, Zee Business and Hindustan Times.

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